Question 1

Which of the following is true regarding notice of termination of an agency relationship?

Accepted Answer

A) Depending on the circumstances,notice of termination can be actual or constructive. 
B) Notice of termination of an agency relationship must be given by actual notice. 
C) Notice of termination of an agency must be given in writing. 
D) Actual notice of termination of an agency relationship is not needed once 60 days have passed since the termination because at that point notice is presumed. 
E) Actual notice of termination of an agency relationship is not needed once 30 days have passed since the termination because at that point notice is presumed. 
A) Depending on the circumstances,notice of termination can be actual or constructive. 
B) Notice of termination of an agency relationship must be given by actual notice. 
C) Notice of termination of an agency must be given in writing. 
D) Actual notice of termination of an agency relationship is not needed once 60 days have passed since the termination because at that point notice is presumed. 
E) Actual notice of termination of an agency relationship is not needed once 30 days have passed since the termination because at that point notice is presumed.

Question 2

The text discussed the case of Aguas v.State of New Jersey,where the New Jersey Supreme Court addressed a correctional officer's hostile work environment claim in which she alleged that she had was sexually harassed by her supervisor on several occasions.Which of the following was the result?

Accepted Answer

A) The case was dismissed because there was an anti-discrimination policy in place,the employer conducted a thorough investigation of the claims,and there was no evidence the alleged harassment derived from the supervisory relationship. 
B) The employer was not liable because it had an anti-discrimination policy in place. 
C) The employer was liable because it failed to look into applicants' background before hiring. 
D) The plaintiff successfully stated her claim for hostile work environment and was granted a $1,000,000 award in damages. 
E) The case was dismissed because the employer launched a thorough internal investigation,which revealed no harassment had occurred. 
A) The case was dismissed because there was an anti-discrimination policy in place,the employer conducted a thorough investigation of the claims,and there was no evidence the alleged harassment derived from the supervisory relationship. 
B) The employer was not liable because it had an anti-discrimination policy in place. 
C) The employer was liable because it failed to look into applicants' background before hiring. 
D) The plaintiff successfully stated her claim for hostile work environment and was granted a $1,000,000 award in damages. 
E) The case was dismissed because the employer launched a thorough internal investigation,which revealed no harassment had occurred.

Question 3

Which type of liability applies when engaging in activities that have an inherently dangerous nature?

Accepted Answer

A) General liability 
B) Special liability 
C) Strict liability 
D) Vicarious liability 
E) Misrepresentation liability 
A) General liability 
B) Special liability 
C) Strict liability 
D) Vicarious liability 
E) Misrepresentation liability

Question 4

What are the two conditions under which the law holds a principal directly responsible for his or her own tortious conduct?

Accepted Answer

First,a principal who directs the agent

Question 5

Which of the following is false regarding termination of agency in the Netherlands?

Accepted Answer

A) Compensation is due if the agent received the orders for a certain action before the termination of the contract. 
B) The agent is entitled to goodwill compensation in certain situations. 
C) There are requirements on the agent in regard to time limits in filing for certain compensation. 
D) An agent is not entitled to additional compensation based on bringing the principal new customers or because agreements with clients obtained by the agent remain profitable. 
E) The agent is entitled to compensation if his or her duties are concluded within a reasonable time after termination. 
A) Compensation is due if the agent received the orders for a certain action before the termination of the contract. 
B) The agent is entitled to goodwill compensation in certain situations. 
C) There are requirements on the agent in regard to time limits in filing for certain compensation. 
D) An agent is not entitled to additional compensation based on bringing the principal new customers or because agreements with clients obtained by the agent remain profitable. 
E) The agent is entitled to compensation if his or her duties are concluded within a reasonable time after termination.

Question 6

The employer is not liable if an agent makes what kind of departure from the course of the employer's business?

Accepted Answer

A) A substantial departure 
B) An unauthorized departure 
C) An absolute departure 
D) A minute departure 
E) Any departure 
A) A substantial departure 
B) An unauthorized departure 
C) An absolute departure 
D) A minute departure 
E) Any departure

Question 7

An agency relationship is always terminated by insolvency on the part of either the principal or agent.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?

Accepted Answer

A) Contributory liability 
B) Responsible liability 
C) Vicarious liability 
D) Comparative liability 
E) There is no such concept 
A) Contributory liability 
B) Responsible liability 
C) Vicarious liability 
D) Comparative liability 
E) There is no such concept

Question 9

Raquel is an agent for Occasion Photography,owned by Luke.Without disclosing her agency status,Raquel agrees by contract to take Ella's wedding photographs.When Luke finds out,he explains the agency relationship he has with Raquel to Ella and says that he wants to take the photographs because a lady he wants to ask out on a date is expected to be at the wedding.However,despite Luke's explanation,Ella still requests that Raquel take her wedding photographs.Which of the following is true regarding the rights of the parties?

Accepted Answer

A) Luke has a right to take the photographs unless the contract Raquel has with Ella is in writing in which case Ella has the right to insist that Raquel take the photographs. 
B) Luke has a right to take the photographs only if his contract with Raquel expressly provides that he can take over her photo shoots. 
C) Luke has a right to take the photographs only if the contract is in an amount over $500. 
D) Luke has a right to take the photographs. 
E) Ella has a right to insist that Raquel take the photographs because Ella's contract required Raquel's services. 
A) Luke has a right to take the photographs unless the contract Raquel has with Ella is in writing in which case Ella has the right to insist that Raquel take the photographs. 
B) Luke has a right to take the photographs only if his contract with Raquel expressly provides that he can take over her photo shoots. 
C) Luke has a right to take the photographs only if the contract is in an amount over $500. 
D) Luke has a right to take the photographs. 
E) Ella has a right to insist that Raquel take the photographs because Ella's contract required Raquel's services.

Question 10

Which of the following is false regarding classification of principals?

Accepted Answer

A) If the third party does not know that an agent is acting on behalf of a principal,an undisclosed principal is involved. 
B) When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is,the principal is a disclosed principal. 
C) Classification of the principal is important because it helps determine the principal's liability. 
D) An unidentified principal is in the same classification as a partially disclosed principal. 
E) If the third party is aware of the principal's existence but not his or her identity,the principal is classified as a disclosed principal. 
A) If the third party does not know that an agent is acting on behalf of a principal,an undisclosed principal is involved. 
B) When the third party is aware that the agent is making an agreement on behalf of a principal and also knows who the principal is,the principal is a disclosed principal. 
C) Classification of the principal is important because it helps determine the principal's liability. 
D) An unidentified principal is in the same classification as a partially disclosed principal. 
E) If the third party is aware of the principal's existence but not his or her identity,the principal is classified as a disclosed principal.

Question 11

Which of the following is an agency agreement created for the agent's benefit,not for the principal's?

Accepted Answer

A) Agency benefit interest 
B) Agency entitlement principle 
C) Agency compensation principle 
D) Agency coupled with an interest 
E) Agency interest principle 
A) Agency benefit interest 
B) Agency entitlement principle 
C) Agency compensation principle 
D) Agency coupled with an interest 
E) Agency interest principle

Question 12

An employer can hire an independent contractor to complete an inherently dangerous activity to escape liability just in case something goes wrong.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following refers to an employer's right,if any,to recover damages from an employee that the employer paid a third party as a result of the employee's negligence?

Accepted Answer

A) The right of recompense 
B) The right of reimbursement 
C) The right of indemnification 
D) The entitlement to equity 
E) There is no such right 
A) The right of recompense 
B) The right of reimbursement 
C) The right of indemnification 
D) The entitlement to equity 
E) There is no such right

Question 14

If Night Club's procedure was to contact the police and not break-up fights,would Night Club be liable to Pat?

Accepted Answer

A) Night Club will not be liable because Trevor is an independent contractor. 
B) Night Club will be liable because Trevor was negligent. 
C) Night Club will not be liable because Night Club did not authorize Trevor's actions and has a policy against breaking-up fights. 
D) Night Club will be liable because it should have known Trevor would engage in these types of actions. 
E) Night Club will not be liable because Trevor's actions are covered under the good Samaritan law. 
A) Night Club will not be liable because Trevor is an independent contractor. 
B) Night Club will be liable because Trevor was negligent. 
C) Night Club will not be liable because Night Club did not authorize Trevor's actions and has a policy against breaking-up fights. 
D) Night Club will be liable because it should have known Trevor would engage in these types of actions. 
E) Night Club will not be liable because Trevor's actions are covered under the good Samaritan law.

Question 15

John hired Alex to fly to California and drive back a new car he purchased.Alex successfully drove the car back and John was satisfied with Alex's services.Has the agency relationship terminated?

Accepted Answer

A) Yes,by mutual agreement of the parties. 
B) No,John must put the termination in writing. 
C) Yes,by lapse of time. 
D) No,John must put the termination in form of a publication. 
E) Yes,by fulfillment of purpose. 
A) Yes,by mutual agreement of the parties. 
B) No,John must put the termination in writing. 
C) Yes,by lapse of time. 
D) No,John must put the termination in form of a publication. 
E) Yes,by fulfillment of purpose.

Question 16

While making a delivery,Elliott,a delivery driver for Sira's Sandwiches,went through the drive through at a local restaurant to get a cup of coffee and bumped into the car in front of him resulting in some damage to the car's bumper.Which of the following is true regarding the liability of Sira's Sandwiches for the damage to the car?

Accepted Answer

A) As a matter of law,Sira's Sandwiches is not liable because Elliott was acting on his own behalf. 
B) As a matter of law,Sira's Sandwiches is not liable because only property damage is involved. 
C) Whether or not Sira's Sandwiches is liable depends on how long Elliott has worked for the company. 
D) Whether or not Sira's Sandwiches is liable depends on whether Elliott's acts are seen as substantial departure from his work. 
E) As a matter of law,Sira's Sandwiches is liable because a company is liable for any torts committed by an employee during working hours. 
A) As a matter of law,Sira's Sandwiches is not liable because Elliott was acting on his own behalf. 
B) As a matter of law,Sira's Sandwiches is not liable because only property damage is involved. 
C) Whether or not Sira's Sandwiches is liable depends on how long Elliott has worked for the company. 
D) Whether or not Sira's Sandwiches is liable depends on whether Elliott's acts are seen as substantial departure from his work. 
E) As a matter of law,Sira's Sandwiches is liable because a company is liable for any torts committed by an employee during working hours.

Question 17

A principal is not liable for an agent's crime if the agent commits a crime in the scope of employment for the principal without the authorization of the principal.

Accepted Answer

A) True 
 B)False

Question 18

[The Big Sale] Simone,the owner of ABC department store,needed to hire a number of employees in a hurry because of a big summer sale she was planning.Jamal was hired by Simone to run a cash register and to assist customers with taking large purchases to their cars.Jamal encountered a particularly annoying customer,Ryan.Ryan started complaining the minute he saw Jamal.Ryan complained about having to wait for Jamal to assist him with carrying his television purchase to his car,about the merchandise in the store,and about the quality of the store's employees.Jamal tried to control himself while he carted Ryan's television to the car;however,when Ryan began verbally attacking Jamal's appearance and professional manner,Jamal threw the television to the ground and punched Ryan in the nose.Ryan chose to investigate Jamal's employment history and discovered that Jamal had been fired from his previous three jobs for taking violent action against customers.Two of his former employers were willing to testify that if Simone had called them,they would have disclosed Jamal's tendencies to her.Jamal listed the former employers on his application,but because she was in a hurry to hire employees,Simone did not take the time to check with the former employers.Another problem confronting Simone during the big sale is that Lea,a long-time employee of Simone who had never caused any problems before,accidentally,but negligently,dropped a box on the foot of a customer,Greg.Greg had to have an X-ray and is threatening to sue both Simone and Lea.
-Which of the following is true regarding Simone's liability,if any,for her own conduct in regards to Ryan's injury?

Accepted Answer

A) Simone would likely be held liable for negligent hiring. 
B) Simone would likely be required to split the damages with Jamal because Jamal was her employee. 
C) Regardless of whether she did anything to directly cause injury to Ryan,Simone would likely be held liable on a strict liability theory because her customer was injured. 
D) Simone would likely be held liable for breach of customer warranty. 
E) There is no theory on which Simone could be held liable for her own conduct in this situation. 
A) Simone would likely be held liable for negligent hiring. 
B) Simone would likely be required to split the damages with Jamal because Jamal was her employee. 
C) Regardless of whether she did anything to directly cause injury to Ryan,Simone would likely be held liable on a strict liability theory because her customer was injured. 
D) Simone would likely be held liable for breach of customer warranty. 
E) There is no theory on which Simone could be held liable for her own conduct in this situation.

Question 19

Actual notice of agency termination must be given to third parties who have had business interactions with an agent in order to fully terminate a principal's responsibility.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following allows an agent to conduct all business for the principal?

Accepted Answer

A) Special power of attorney 
B) Durable power of attorney 
C) Acknowledged power of attorney 
D) Equal power of attorney 
E) General power of attorney 
A) Special power of attorney 
B) Durable power of attorney 
C) Acknowledged power of attorney 
D) Equal power of attorney 
E) General power of attorney

Exam 34: Liability to Third Parties and Termination

Which of the following is true regarding notice of termination of an agency relationship?

The text discussed the case of Aguas v.State of New Jersey,where the New Jersey Supreme Court addressed a correctional officer's hostile work environment claim in which she alleged that she had was sexually harassed by her supervisor on several occasions.Which of the following was the result?

Which type of liability applies when engaging in activities that have an inherently dangerous nature?

What are the two conditions under which the law holds a principal directly responsible for his or her own tortious conduct?

Which of the following is false regarding termination of agency in the Netherlands?

The employer is not liable if an agent makes what kind of departure from the course of the employer's business?

An agency relationship is always terminated by insolvency on the part of either the principal or agent.

Which of the following holds the principal-employer liable for any harm caused by the agent-employee during the time that the agent-employee is working for the principal?

Which of the following is false regarding classification of principals?

Which of the following is an agency agreement created for the agent's benefit,not for the principal's?

An employer can hire an independent contractor to complete an inherently dangerous activity to escape liability just in case something goes wrong.

Which of the following refers to an employer's right,if any,to recover damages from an employee that the employer paid a third party as a result of the employee's negligence?

If Night Club's procedure was to contact the police and not break-up fights,would Night Club be liable to Pat?

John hired Alex to fly to California and drive back a new car he purchased.Alex successfully drove the car back and John was satisfied with Alex's services.Has the agency relationship terminated?

A principal is not liable for an agent's crime if the agent commits a crime in the scope of employment for the principal without the authorization of the principal.

Actual notice of agency termination must be given to third parties who have had business interactions with an agent in order to fully terminate a principal's responsibility.

Which of the following allows an agent to conduct all business for the principal?

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Legal Assent

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

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